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Are Overdraft Fees On Their Way Out?

Posted in Banking News, Checking Accounts by CrankySaver
March 11, 2010 06:15 AM - 4 Comments

The nation’s largest bank, and biggest issuer of debit cards, is finally doing the right thing.

Bank of America will stop letting customers overdraw their checking accounts just so it can zing them with hefty overdraft fees.

The nation’s largest bank, and biggest issuer of debit cards, is finally doing the right thing.

Starting this summer, it will decline purchases that overdraw a customer’s checking account and inform them that they’ll have to pay an overdraft fee before allowing them to withdraw more money than they have in their account from an ATM.

With Citigroup already pursuing a similar policy, we can only hope other banks will get the message and follow suit.

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Comments (4)
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4 Existing Comments

  1. Phillip said:
    on March 11th at 12:49 pm

    It’s about time. I wonder how this will affect interest rates on savings and checking accounts? Also, do you think that since they have limited their overdraft fees, they’ll start charging more for monthly maintenance fees?

  2. Sara Munk said:
    on March 12th at 02:10 am

    BOfA is doing the right thing and glad they did it first. It is better to say sorry when the customer goes beyond the eligible amount rather than charge ridiculous overdraft fees.

  3. Ingo said:
    on March 12th at 11:13 am

    Sorry, but I do not understand this at all. Go to Europe and open a bank account. Provided that you have a constant revenue stream coming in from a source they allow you to overdraw your account. There is not fee for overdrawing but they charge you interest on the money. The overdraft of course is, just like the US credit card, limited. Very convenient procedure compared to the ridiculous idea of having to have a credit card where I can have a credit and needing to move money around. Why are things always so freaking complicated in the US. European credit cards are by the way payed in full each and every month. There is hardly the option to not pay in full.

  4. Terrin said:
    on March 12th at 05:20 pm

    Bank of America isn’t doing the right thing by real choice. It knows some members of Congress want the recently implemented Credit Card restrictions to extend to other bank practices as well. The public definitely wants such regulation. BOA would rather submit now on it’s own accord, then be forced to adhere to more strict regulations later.

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